Is Apache Corporation (NYSE:APA) worth buying? Here’s a couple indicators that can address this question.
Now, according to many investors, hedge funds are viewed as overrated, old financial vehicles of a forgotten age. Although there are over 8,000 hedge funds in operation today, Insider Monkey focuses on the moguls of this club, about 525 funds. Analysts calculate that this group oversees the lion’s share of the smart money’s total capital, and by monitoring their highest quality equity investments, we’ve identified a few investment strategies that have historically outpaced the broader indices. Our small-cap hedge fund strategy beat the S&P 500 index by 18 percentage points per annum for a decade in our back tests, and since we’ve began to sharing our picks with our subscribers at the end of August 2012, we have topped the S&P 500 index by 33 percentage points in 11 months (find the details here).
Just as necessary, positive insider trading activity is a second way to look at the stock market universe. Obviously, there are a variety of motivations for an executive to cut shares of his or her company, but just one, very simple reason why they would buy. Several empirical studies have demonstrated the market-beating potential of this method if investors know where to look (learn more here).
What’s more, we’re going to examine the latest info about Apache Corporation (NYSE:APA).
What does the smart money think about Apache Corporation (NYSE:APA)?
In preparation for the third quarter, a total of 44 of the hedge funds we track held long positions in this stock, a change of 7% from the first quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings substantially.
When using filings from the hedgies we track, William B. Gray’s Orbis Investment Management had the most valuable position in Apache Corporation (NYSE:APA), worth close to $466.6 million, comprising 3.7% of its total 13F portfolio. The second largest stake is held by Eagle Capital Management, managed by Boykin Curry, which held a $377.3 million position; the fund has 2% of its 13F portfolio invested in the stock. Other hedgies that are bullish include Kenneth Mario Garschina’s Mason Capital Management, Matt McLennan’s First Eagle Investment Management and Ric Dillon’s Diamond Hill Capital.
As aggregate interest spiked, certain money managers have jumped into Apache Corporation (NYSE:APA) headfirst. Orbis Investment Management, managed by William B. Gray, created the largest position in Apache Corporation (NYSE:APA). Orbis Investment Management had 466.6 million invested in the company at the end of the quarter. Boykin Curry’s Eagle Capital Management also made a $377.3 million investment in the stock during the quarter. The following funds were also among the new APA investors: Kenneth Mario Garschina’s Mason Capital Management, Matt McLennan’s First Eagle Investment Management, and Ric Dillon’s Diamond Hill Capital.
How are insiders trading Apache Corporation (NYSE:APA)?
Insider buying is most useful when the company in focus has experienced transactions within the past 180 days. Over the last 180-day time frame, Apache Corporation (NYSE:APA) has experienced 5 unique insiders buying, and 1 insider sales (see the details of insider trades here).
We’ll check out the relationship between both of these indicators in other stocks similar to Apache Corporation (NYSE:APA). These stocks are Noble Energy, Inc. (NYSE:NBL), Anadarko Petroleum Corporation (NYSE:APC), Devon Energy Corp (NYSE:DVN), Canadian Natural Resource Ltd (USA) (NYSE:CNQ), and EOG Resources Inc (NYSE:EOG). All of these stocks are in the independent oil & gas industry and their market caps are similar to APA’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Noble Energy, Inc. (NYSE:NBL) | 31 | 0 | 5 |
| Anadarko Petroleum Corporation (NYSE:APC) | 65 | 0 | 2 |
| Devon Energy Corp (NYSE:DVN) | 42 | 0 | 1 |
| Canadian Natural Resource Ltd (USA) (NYSE:CNQ) | 23 | 0 | 0 |
| EOG Resources Inc (NYSE:EOG) | 48 | 0 | 8 |
Using the returns explained by our strategies, regular investors must always keep one eye on hedge fund and insider trading sentiment, and Apache Corporation (NYSE:APA) shareholders fit into this picture quite nicely.
